Collateral Underwriter "suggested Comparables"

[djd09]

Yeah, private capital is just itching to get into mortgages at a 3.5 - 4.0% yield before origination costs, servicing costs and provisions for credit losses which amount to at least 150 -200 basis points, making a potential ROI of around 2 - 2.5% at those types of mortgage interest rates....lol. You have no clue

Jamie Gorelick. no clue

 

[djd09]

There are a few groups that may have benefited more than appraisers, but so what as that is consistent with my original comments? Who cares anyhow...the fact is that residential appraisers are huge beneficiaries of the GSE bailout

no clue. you live in a bubble.

 

[djd09]

if i was a socialist i would ask the taxpayers to bail me out.
you notice that fannie got 200,000,000,000 and we are the biggest beneficiaries. they won the lottery many times over and over.
you don't like to talk about fannies past. why?
i'm clueless and you are bias.

 

[Terrel L. Shields]

Mortgage lending is a loser investment in this climate.

People buying Swiss bonds are in negative territory. I think 4% would look pretty good by comparison. Truth is super low rates are distorting the whole market. Two years ago when talk was that the Fed would raise rates early in 2014, I predicted that they would have to backtrack as the markets reacted negatively to increasing rates. I thought they would raise the rates, then have to back pedal or restart the QE to offset the issue. Well....so far the mere mention of raising rates, such as Bernanke did that May and guess what? the whole market panicked. So they had to back down from even talking about raising rates. And now some of the board is talking of not raising rates until 2016.
On Bloomberg this morning they were discussing whether these rates were so low for so long, the FED was stuck and couldn't raise them again without a massive and ugly shift in the market. The guest was arguing that it was fine and great for the economy....Whose economy? The borrower? What about all those folks who actually saved their money for retirement with the government itself recommending that they get into "safer" investments as they age, such as the money market and bonds. What kind of investment is a 2% long term bond? None. No one can live off the interest from 2%. 6% income for savers with only $200,000 in the bank is $1000 a month. Most people of modest means can "make it" on that and SSI. But at 1%, you are having to draw down the money and hope you die sooner than it runs out. Low interest rates hurt a lot of people, and just as bad, it encourages some bad investing on the part of those without savings. So we have people at 65 years old investing in the stock market having never done so in their lives, and either paying for some poor advice from so-called pros or winging it themselves. Clueless. I wonder how many retirees have returned to work because they can see their "investments" have hurt them severely and they will never recoup that money.

 

[djd09]

Yeah, private capital is just itching to get into mortgages at a 3.5 - 4.0% yield before origination costs, servicing costs and provisions for credit losses which amount to at least 150 -200 basis points, making a potential ROI of around 2 - 2.5% at those types of mortgage interest rates....lol. You have no clue

they would set the rates to reflect the risk. ugh

 

[djd09]

Yeah that's what I've been saying. Mortgage lending is a loser investment in this climate. People wonder why appraisal (and other) fees are so low. Math.

you know what that the AMC's are charging?

 

[timd354]

if i was a socialist i would ask the taxpayers to bail me out.
you notice that fannie got 200,000,000,000 and we are the biggest beneficiaries. they won the lottery many times over and over.
you don't like to talk about fannies past. why?
i'm clueless and you are bias.

I have no problem telling anyone that Fannie and Freddie screwed the pooch and as a result needed to get bailed out. Additionally, I think that Jamie Gorelick, Frankin Raines and Dick Syron (Freddie) deserve to be in prison. However that does not change the fact that the all monies advanced by the federal government to the GSEs have been repaid in full plus an additional $38 billion dollars that is profit that the government made off of the GSE bailout (which will continue to increase moving forward, It also does not change the reality that resdientail appraisers have been huge beneficiaries of the goverment bailout of the GSEs which prevented a complete collapse of the secondary mortgage market. The sad fact is that the people in charge of the GSEs prior to the collpase have never been punished and never will be punished. Additionally, whether you like it not, the GSEs are probably here to stay. The gov't has not figured out how to get rid of them yet even though 7 years have passed since they collapsed and the government surely havs little incentive to abolish the GSEs now that they are providing a postive cash flow into the treasury. However, I am not going to spend a lot of time and energy worrying about that as I am more concerned with dealing with the present and future and worrying about the things that I can control. If you want to keep bitching and moaning about what should have been, I can't stop you, but it is not really a productive way of spending your time.

 

[Scott Kibler]

you know what that the AMC's are charging?

With AMCs the total appraisal cost including administrative overhead is a pass through to the borrower. A lender keeping that function in house has to budget staff thus eating away further at that sweet ROI.

 

[timd354]

Doppel-Post

 

[timd354]

Yeah that's what I've been saying. Mortgage lending is a loser investment in this climate. People wonder why appraisal (and other) fees are so low. Math.

Come on, you could have bought some mortgage backed securities today with a yield of anywhere from 1.5 - 2.25%. Don't you think that kind of ROI will attract a massive amount of private capital into the mortgage market? lol

they would set the rates to reflect the risk. ugh

They would set the rates to reflect risk and to earn an acceptable ROI. That would have meant double digit interest rates after the bubble burst in order to be able to attract any significant amount of private capital into the mortgage markets after the bubble burst. You think that things were ugly for appraisers the past seven years with the bailout? Without the the bailout most of the residential appraisal profession would have been utterly wiped out.